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2016 (1) TMI 753 - ITAT KOLKATATDS u/s 194C - disallowance of job work charges without deduction of TDS - CIT(A) deleted the addition - Held that:- See case of BDA Ltd. vs. ITO (TDS) (2004 (3) TMI 11 - BOMBAY High Court ), wherein it is held that supply of printed materials constitutes sale under the sale of Goods Act; and section 194C of the Act is not applicable. In that case it was held that supply of printed packaging labels merely because the printing was done as per requirement/specifications of the assessee, it could not be said that any work was carried out on behalf of the assessee. We find that similar issue was dealt by various courts, wherein it has been held that supply of any article or thing fabricated according to the specification of the purchaser and the property in such article passes to the person only after the same is delivered, the contract will be a contract on sale and as such falls outside the purview of section 194C of the Act. Therefore, the Assessing Officer erred in law in making disallowance despite the facts that the said amount is paid for purchases and section 194C of the Act is not applicable. Accordingly, no disallowance by invoking the provisions of section 40(a)(ia) of the Act can be made. - Decided in favour of assessee. Disallowance of set off of unabsorbed depreciation loss against current year’s income - CIT(A) allowed the claim - Held that:- In view of the ratio laid down in the case of General Motors India Pvt. Ltd V DCIT (2013) [2012 (8) TMI 714 - GUJARAT HIGH COURT ] we are of the considered view that the unabsorbed Depreciation loss of A.Y. 1997-98 & 1998-99 is allowable and should be adjusted with the total computed income unabsorbed Depreciation loss should be carried forward. The CIT(A) has rightly allowed the claim of unabsorbed depreciation loss of the assessee and we confirm the same - Decided in favour of assessee.
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